Pershing Square Invests in Meta, Divests from Hilton
Bill Ackman, the billionaire investor and head of Pershing Square Capital Management, has made a significant investment in Meta Platforms. In a recent update to clients, Ackman reported that his hedge fund acquired approximately $2 billion in Meta shares. This investment reflects a strategic bet on the potential of artificial intelligence (AI) to elevate Meta’s business prospects.
Investment Details and Strategy
Pershing Square allocated around 10% of its capital to this initiative. The chief investment officer, Ryan Israel, emphasized that the current share price of Meta does not fully reflect its long-term growth potential linked to AI advancements.
- Investment Amount: Approximately $2 billion
- Percentage of Firm’s Capital: 10%
Despite a 7.4% decline in Meta’s stock over the last year, the hedge fund’s timing has been fortuitous. Since buying shares in November, the stock has seen an 11% rise by early 2025 and a further 3% increase by February 9, 2026.
Concerns and Future Outlook
Investors have expressed unease regarding Meta’s significant expenditures on AI projects, which may have contributed to its stock performance. However, Ackman’s team remains optimistic, believing these investments will enhance content recommendations and personalized advertising. They foresee the emergence of new engagement channels through AI-driven assistants and wearable technology.
Divestment from Hilton Worldwide
In addition to the investment in Meta, Pershing Square has exited its position in Hilton Worldwide Holdings. This divestment aligns with Ackman’s strategy of concentrating investments in technology sectors, signaling a pivot in focus.
Ackman’s Investment Philosophy
Ackman is known for making a limited number of investment bets, focusing on high-impact opportunities. His recent moves in the tech industry, including past investments in Amazon and Alphabet, highlight his commitment to leveraging technological growth.
As Pershing Square navigates these strategic changes, Ackman’s leadership continues to draw attention from market observers keen on his next moves in the evolving landscape of technology investments.
